What is us economic stimulus package? And how it could benefit you in the dire economic crisis?
Donald Trump has approved the set of over $ 2 billion worth of financial assistance measures to mitigate the effects of the crisis caused by the coronavirus pandemic.
The stimulus package was promulgated by Trump as soon as the US House of Representatives approved it.
The US Senate had previously approved the set of financial assistance measures on Wednesday. Washington politicians have thus managed, despite general disagreements, to reach an agreement.
“Our nation is facing an economic and medical emergency of historical proportions. We know we need to do more. This may not be the last law we approve, "said Nancy Pelosi, president of the House of Representatives.
"From this point of view, in our nation, it is a level of investment-specific to the war periods " - thus defined Mitch McConnell, the leader of the Republican majority in the US Senate, the economic stimulus package.
Main Provisions
Income support
White House officials initially rejected the need for direct transfer of funds to families, but the direction was quickly changed to what they initially called "helicopter money," in the context where many families will need funds due to suspension of economic activities.
The amount offered by the Treasury Department will be $ 1,200 for an adult, or $ 2,400 for a couple, and additional child support. The aid will be capped starting with annual incomes of over $ 75,000 per person or $ 150,000 per couple, so rich families will not benefit.
Plans to save companies
The legislation provides $ 500 billion for loans to businesses affected by the crisis caused by the coronavirus epidemic, including $ 25 billion for airline passengers, $ 4 billion for cargo airlines and $ 17 billion for "essential" airlines. maintaining national security ”. The remaining $ 454 billion is earmarked for government loans and loan guarantees, including through lending facilities created by the Federal Reserve (Fed).
The $ 500 billion plan was one of the most contested elements of the set of measures, with Democratic politicians cataloguing it as a corporate responsibility with limited responsibility.
Finally, the agreement provides for additional monitoring of the fund by an inspector general, following the model of the $ 700 billion Wall Street Rescue Fund (Tarp) program created during the 2008 financial crisis.
Unemployment insurance
As some economists estimate that millions of Americans will become unemployed as the pandemic hits the economy hard, Congress and the White House have decided to increase unemployment benefits by $ 600 a week for four months, in addition to the amount set by each American state, he explained. Chuck Schumer, the leader of the Senate Democratic group. Unemployment benefits vary from state to state, averaging $ 385 per week.
Financing for hospitals
Chuck Schumer referred to this part as the "Marshall Plan" for the American medical system. The $ 150 billion amount is planned for funding hospitals, staff and protective equipment, for medical tests, training and supplementing employees.
Support for small businesses
The law provides for loans and guarantees worth $ 367 billion for companies with fewer than 500 employees, strongly affected by the impact of social distance measures. Many small companies have been forced to suspend activities due to anti-epidemic restrictions imposed by the authorities.
Nevertheless, the Economic Stimulus Act can be deemed to have the required wings to bring some relief to the millions that are going to be impacted by the Covid-19 virus but a much larger national exertion of efforts is necessary within the field of medicine and hospitalization to sustain the storm that is coming.
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